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Japanese-brand investments = big boost in U.S. auto jobs

Tuesday, Feb. 19, 2019, 02:29 PM

By Auto Remarketing Staff

WASHINGTON, D.C. -

For decades, Japanese-brand automakers have made investments in the U.S. economy and U.S. workforce. That commitment has paid off for U.S. workers.

According to an employment study that Rutgers University economics professor Thomas Prusa prepared for the Japan Automobile Manufacturers Association’s U.S. office, those Japanese automakers generate 1.52 million jobs throughout the United States.

The study, titled, “The Contribution of the Japanese-Brand Automakers to the United States Economy,” shows continued nationwide growth in direct, dealer network, intermediate and spin-off employment.

As of late 2017, according to the report, Japanese-brand automakers directly employed more than 92,000 workers. Also, their dealer network employed more than 355,000 workers.

“In addition to their direct and dealer employment, these companies support approximately 250,000 jobs in the U.S. automotive supplier network, actively strengthening the American manufacturing base,” Prusa said in a news release.

Other notable numbers from the report:

— More than 781,000 U.S. jobs are generated by the Japanese-brand automobile companies’ U.S. production facilities, R&D centers and headquarters.

— More than 738,000 U.S. jobs are generated by the Japanese-brand automobile companies’ dealer network.

— The contribution of 1.52 million private sector U.S. jobs makes Japanese-brand automobile companies among the largest job creators in the United States.

— Total annual compensation from the jobs that Japanese-brand automobile companies create in the United States is more than $109 billion.

— Personal income taxes from these jobs are almost nearly $16 billion, the study estimates.

Manny Manriquez, general director of the Japan Automobile Manufacturers Association’s U.S. office, noted in a news release that Japanese-brand automakers' cumulative direct U.S. employment has risen by almost 28 percent since 2011. That is much higher than the 6-percent growth rate in overall U.S. manufacturing employment over the same time period, Manriquez noted.

Manriquez urged leaders in Washington, D.C. to keep those numbers in mind as they consider trade policies affecting the American auto industry.

Speaking of which, several dealer organizations have voiced on similar trade matters. More on that here.